NCL, Neyveli plan Rs 5k cr power plant

Northern Coalfields Ltd (NCL) and Neyveli Lignite Corporation (NLC) will be investing Rs 5,200 crore for setting up a 1,000 mw pit-head power station at Gorbi mines in the Singrauli Coalfields. The scope of the project also includes mine development.

While Rs 4,500 crore would go in for setting up the pit-head power unit, another Rs 700 crore would be invested for development of mines. The two PSUs have already inked a memorandum of understanding (MoU) to go ahead with the project.

Senior Coal India (CIL) officials said, the two companies would be forming a special purpose vehicle for the pit-head power unit and mine development.

According to one CIL official, "Probably it would be a 50:50 stake in the SPV for the two PSUs. Money will not be a problem but we have to put our infrastructure in place to meet power needs during the 11th Plan."

NLC is also holding talks with Mahanadi Coalfields (MCL) for setting up a 2,000 mw pit-head power unit at Vasundhara mines in the Ib Valley coalfields.

The country's largest coal producing company, South Eastern Coalfields, (SECL) has already entered into an MoU with Chhattisgarh State Electricity Board (CSEB) for setting up another pit-head power station.

CIL officials said the necessity to set up pit-head power stations was mostly because of evacuation problems currently faced by its subsidiaries such as MCL and Central Coalfields. Huge amount of coal is lying unutilised in the Manoharpur and Gopalpur blocks of MCL.

Similarly, north Karanpura coalfield in the CCL area is also facing evacuation problems.

With the Tori-Sibpur coal evacuation railway line yet to take shape, there is virtually no material movement from some parts of the Central Coalfields.

The setting up of the pit-head power station at Gorbi mines will help NCL directly feed the power stations of Panipat, Rajghat and Indraprastha.

Meanwhile, proposals are currently being looked into for expansion of capacity of the Jayanta coalmines in the Singrauli coalfields. Like other CIL subsidiaries, NCL is desperately trying to combat evacuation problems currently faced in the Singrauli coalfields. NCL currently has 8 open cast mines and no underground mines.